For the second-straight quarter, CCIMs reported the most transaction activity in the industrial sector, according to the CCIM Institute’s 3Q14 Quarterly Market Trends report. Seventy-one percent of members who responded to an August/September 2014 market intelligence survey experienced greater industrial deal flow year over year, and 79 percent of CCIM respondents said they received more inquiries from buyers over the same period last year.
Industrial asset prices were higher for 46 percent of respondents and remained flat for 42 percent of members. Capitalization rates for industrial properties held steady for 46 percent of member respondents; 42 percent said cap rates declined in their markets YOY. Industrial investments also registered highest on the investment value vs. price scale, coming in at 3.2 percent on a scale of 1 to 5 (with 1 being lowest and 5 being highest).
Multifamily Continues to Rank as Top Investment Sector
The multifamily sector’s investment conditions continue to rank highest among the five major property types, according to responding members. On a scale of 1 to 5 (with 1 being lowest and 5 being highest), multifamily investments ranked 4.0, followed by industrial (3.6), retail (3.2), hospitality (3.2), and office (2.8), respectively.
Other highlights include economic activity in the South and East regions, where 31.1 percent and 23.5 percent of respondents respectively said their regional economic climate is booming, according to the report. In addition, 54 percent of CCIM member respondents said they expect credit conditions to continue to improve, while 40 percent said the current financing climate is the new normal in their region.